Startups have an edge over large enterprises: self-capping downside.

If a startup does something dangerous or creates a bad product, they tend to be self-extinguishing; they go out of business before doing too much damage.

(Of course there are exceptions, e.g. a startup that creates a thing that benefits the user at the cost of massive negative externalities)

A startup is a little mouse. They can tiptoe through a garden.

For society, it's best for innovation that has possible downside to be done by a swarm of mice, not a small number of elephants.